"The decision to impose (higher) duty on imported power equipment is expected in the Budget (2012-13) as levy duty related decisions are announced in the Budget session," sources told PTI.

Currently, equipment imported for projects of less than 1,000 MW capacity attract five per cent customs duty, while those above that enjoy exemption.

The plan to slap higher duty on overseas power gear is aimed at providing a level-playing field for domestic manufacturers which are battling intense competition, mainly from China.

Power and Commerce Ministries have suggested a total of 19 per cent levy on imported power equipment while the Heavy Industry Ministry has recommended a duty structure of 14 per cent, sources said.

The three ministries have differences on the quantum of basic customs duty that can be slapped on overseas power gear. While the Power Ministry has pitched for five per cent customs duty, Commerce and Heavy Industry Ministries are seeking 15 per cent and 10 per cent, respectively, they said.

A committee headed by Planning Commission Member Arun Maira in its report had suggested imposition of 14 per cent levy -- with a customs duty of 10 per cent.

Meanwhile, the Co-ordinating Committee of Secretaries (CCoS) had pitched for 19 per cent levy on imported power gear including five per cent customs duty.

Private power producers, most of whom depend on overseas equipment, are voicing strong opposition to the proposal of higher duty saying that such a move would adversely impact the sector.